Kim: Tune out the media hysteria and stick to investing plan
I’ve written a number of columns with advice for when the talking heads are screaming about the coming apocalypse, so I thought it might be useful to review some of those concepts.
Investing Column
Articles
Skarbeck: 401(k) lawsuits help fuel fiduciary-duty debate
Chalk this up as one for “Ripley’s Believe It or Not!” The employees of some well-known financial firms have sued their employers for placing their own company’s proprietary mutual funds in their 401(k) plans.
Skarbeck: Hedge fund track records fail to live up to the hype
California Public Employees’ Retirement System is dumping its entire hedge fund program. The reason, according to Ted Eliopoulos, the chief investment officer, is “their complexity, cost and lack of ability to scale to CalPERS size.“
Skarbeck: A new type of index fund is gaining investor interest
Recently, financial academics, like Rob Arnott of Research Affiliates, have published white papers supporting a different type of index investing. They call their creation “smart beta.
KIM: Worlds of sports, finance continue to collide
Instead of assembling a pretend roster for your fantasy football league, how would you like to actually own a piece of Andrew Luck or your favorite player?
Skarbeck: Risk measure stokes debate over merits of index funds
While the goal of many investors is to “beat the market,” it is a well-known fact that most investors (including professionals), underperform the market over the long run. Hence, the argument to buy index funds. Investors who invest in index funds accept the aggregate ups and downs (volatility) of the broad stock market.
Kim: With colleges, higher cost doesn’t mean greater value
A college education is one of life’s costliest investments, so you want to maximize your return on that investment.
Skarbeck: New rules could take shine off money market funds
The Securities and Exchange Commission last month approved new rules for money market funds, which require institutional “prime” money funds and municipal funds to have a floating net asset value, or NAV.
Kim: Investors–watch out for penny-stock ‘wolves’
Accurate information about low-priced stocks issued by the smallest of companies can be difficult to find. This makes it easy for fraudsters to spread false information. It’s truly the Wild West of speculation.
Skarbeck: Pension funds rethinking zeal for hedge fund bets
The California Public Employees’ Retirement System, the largest public pension fund in the United States, recently announced it would reduce its hedge fund investments by a dramatic 40 percent.
Kim: Navy SEAL’s training provides life lessons
Admiral William H. McRaven, a Navy SEAL and commander of U.S. Special Operations Command, spoke this May to the graduating class of his alma mater, the University of Texas at Austin, with advice on “if you want to change the world.”
Skarbeck: Bucking common jitters rewards stock investors
When it comes to investing, some deep thinking can provide perspective on your finances. A reflective investor will find himself challenging some of the accepted beliefs held dear by the investment industry.
Kim: Midterm election years challenging for stocks
A persistent seasonal anomaly for stocks is the “presidential cycle,” a pattern of performance coinciding with various years of a presidency.
Skarbeck: Lots of reasons to avoid ‘liquid-alt’ mutual funds
Considering that annual fees can run 3 percent or more, and investment performance for the vast majority of these funds has been subpar, if offered a liquid-alt mutual fund, our decision would be to pass.
Kim: Investors fleeing market as stocks hit record highs
It’s amazing how the 24/7 media bombardment of random noise and sound bites on the economy and markets has investors continually on tenterhooks. It seems Armageddon is always lurking around the corner.
Skarbeck: Multi-asset model risky for institutional investing
Wall Street’s propensity to create arcane products and sell them to investors within broad asset-allocation programs has increased portfolio complexity and altered overall performance.
Kim: Envy can be dangerous to your financial health
If your employer offered to double your salary, would you jump at the chance? In a rational world, you’d take that deal 100 times out of 100. However, you’ll probably be surprised to learn how we make a “no brainer” decision like this depends on whether someone else is involved.
Skarbeck: Hedge fund fees pile up despite bad performance
Investors continue to pour money into hedge funds, even though their performance has been downright awful.
Kim: What is insider trading? It’s time for clear answer
Illegal insider trading generally refers to buying or selling a stock, in breach of a duty of trust and confidence, while in possession of “material, non-public information” about the stock. This also can apply if the person possessing the information (the “tipper”) passes along the information to a “tippee,” who then trades the stock. Steve […]
Skarbeck: Trillions raised, invested by private equity players
An estimated 2,700 private equity firms manage some $3.5 trillion in assets. Often called “buyout firms,” they solicit investments from pension funds and other well-heeled investors that are pooled into “funds” and used to acquire public and private companies.